Gold continues to fall as investors raise cash
New York, NY, United States (AHN) – Gold continued to lose its luster on Monday, falling more than $62 an ounce in early afternoon trading.
The precious metal suffered steep losses last week, shedding almost $100 an ounce on Friday. The yellow metal had a steady ascent this year, rising more than 30 percent, before getting whacked in the last several trading sessions.
Investors had taken to the yellow metal powered by an increasing aversion to paper money as threats of defaults here and abroad mounted.
Some analysts surmise that gold is under heavy selling pressure as many traders are being forced to sell the commodity to shore up balance sheets and book some gains.
Silver, which closely tracks gold, also fell again Monday. At last check “poor man’s gold” was down about a $1 an ounce at $30 after rebounding from a low of $26.15 an ounce.
Late Friday, the CME increased margin requirements for gold, silver and copper contracts, putting increased selling pressures on the metals.
Gold hit an all-time high of $1,923.70 a troy ounce in September, and $2,000 an ounce was seen as imminent before the end of the year. Gold bulls are still bullish and view the dips as a buying opportunity, Many say its run is far from over.
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